Written answers
Wednesday, 9 June 2010
Department of Finance
Urban Renewal Schemes
5:00 am
Bernard Durkan (Kildare North, Fine Gael)
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Question 57: To ask the Minister for Finance the number and location in County Kildare of the various urban renewal, Section 23, or other incentives approved by him since the inception of the respective schemes; the extent to which all such schemes were completed in accordance with the proposals; the degree to which all moneys were drawn down; the number and location of any such schemes incomplete for whatever reason; the extent of any remaining works to be completed; and if he will make a statement on the matter. [24803/10]
Bernard Durkan (Kildare North, Fine Gael)
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Question 58: To ask the Minister for Finance the number and location in the country of the various urban renewal, Section 23, or other incentives approved by him since the inception of the respective schemes; the extent to which all such schemes were completed in accordance with the proposals; the degree to which all moneys were drawn down; the number and location of any such schemes incomplete for whatever reason; and the extent of any remaining works to be completed. [24805/10]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 57 and 58 together.
I have provided information in an appendix on the areas that were designated for tax relief under the various area-based tax incentive schemes and where projects may have been developed, viz.:
· Islands
· Seaside Resorts
· Integrated Area Urban Renewal
· Town Renewal
· Rural Renewal
· Living over the Shop
The sectoral schemes, such as those for childcare facilities and nursing homes, were not restricted to designated areas and could have been developed in any part of the country. I am not in a position to provide information on the number of projects that were developed and the precise location of such projects. Many of the projects developed under the various area-based and sectoral property incentive schemes did not require approval or certification. To facilitate more efficient administration, the incentive schemes operated to a certain extent on a self-assessment basis, subject, of course, to compliance with the planning requirements of local authorities. The conditions that had to be met by a project or by a person claiming tax relief are set out in the Tax Acts and also, in some cases, in detailed guidelines. For example, student accommodation projects must meet the conditions set out in guidelines published by the Department of Education and Science. I am informed by the Revenue Commissioners that when all of the conditions for a particular incentive scheme have been met, claims for tax relief are made in the annual return of income submitted by taxpayers under the self-assessment system. All returns are subject to check and audit to ensure that, inter alia, any tax relief is correctly claimed. Taxpayers claiming tax relief are required to indicate the particular incentive scheme under which the relief is being claimed but not the actual project and where it is located. For these reasons, the information requested by the Deputy is not available.
Similarly, I am not in a position to provide the information requested by the Deputy on the extent to which schemes have been completed in accordance with the proposals and the number and location of incomplete schemes. I would point out that the termination date for most of the schemes has already passed and future termination dates are in place for other schemes. These termination dates are the dates by which the construction or refurbishment work on a building has to be carried out if the expenditure that is attributable to that work is to qualify for tax relief.
The Deputy will see from the table below that many of the schemes have a termination date of 31 July 2008. As part of the phasing out of these schemes there was a gradual reduction in the amount of expenditure that can qualify for tax relief. All of the expenditure in 2006 will qualify for relief but only 75% of the expenditure incurred during 2007 will qualify. This goes down to 50% for expenditure incurred during 2008. Where a building is not completed by 31 July 2008 the expenditure attributable to any construction or refurbishment work that takes place after this date cannot qualify for tax relief. Thus, while certain buildings in schemes with a termination date of 31 July 2008 are currently incomplete, the amount of potential tax relief that will apply on completion will not increase beyond that which applied at 31 July 2008. A similar situation applies with all of the termination dates.
SCHEMES | TERMINATION DATE |
Urban Renewal 1994 | 30 April 1999 |
Temple Bar Area | 31 December 1999 |
Seaside Resort | 31 December 1999 |
Islands | 31 December 1999 |
Customs House Dock | 30 June 2000 |
Enterprise Areas | 31 December 2000 |
Countrywide Refurbishment | 31 July 2008 |
Urban Renewal 1999 | 31 July 2008 |
Town Renewal | 31 July 2008 |
Rural Renewal | 31 July 2008 |
Multi-storey Car Parks | 31 July 2008 |
Living over the Shop | 31 July 2008 |
Park and Ride | 31 July 2008 |
Third Level Buildings | 31 July 2008 |
Qualifying Sports Injury Clinics | 31 July 2008 |
Hotels continue to qualify for capital allowances but over 25 years instead of over 7 years. | 31 July 2008 |
Holiday Cottages | 31 July 2008 |
Student Accommodation | 31 July 2008 |
Nursing Homes | 30 June 2010 or 30 June 2011 |
Housing for elderly/infirm | 30 April 2010 |
Convalescent Homes | 30 June 2010 or 30 June 2011 |
Hospitals | 30 June 2010 or 30 December 2013 |
Mental Health Centres | 30 June 2010 or 30 June 2011 |
Mid-Shannon Corridor Tourism Infrastructure Scheme | 31 May 2013 |
Childcare Buildings | 31 March 2011 or 31 March 2012(Finance Bill 2010) |
Specialist Palliative Care Units | Scheme awaiting Commencement Order |
Information on the potential overall cost of the property-based incentive schemes is not available. Therefore, I am not in a position to tell the Deputy the degree to which all monies have been drawn down. I can, however, provide the Deputy with information collected by the Revenue Commissioners in respect of tax relief claimed by taxpayers in respect of the various schemes. I would point out that this information is collected at the aggregate level for a particular scheme and not in respect of individual projects and locations. The table below sets out the position for the years 2007 and 2008.
2007 (note 2) | 2008 (notes 2 & 3) | |
SCHEMES | Amount Claimed | Tax ForgoneAmount ClaimedTax Forgone |
€m | €m | |
Urban Renewal | 280.0 | 109.3224.684.5 |
Town Renewal | 86.1 | 34.660.523.7 |
Seaside Resorts | 20.3 | 8.014.55.7 |
Rural Renewal | 121.9 | 48.584.634.2 |
Multi-storey car parks | 24.0 | 9.616.86.6 |
Living over the Shop | 8.0 | 3.06.12.5 |
Enterprise Areas | 7.0 | 2.86.22.5 |
Park & Ride | 3.3 | 1.41.70.7 |
Holiday Cottages | 30.7 | 12.426.810.8 |
Hotels | 307.1 | 118.0300.6114.7 |
Nursing Homes | 45.3 | 18.347.619.4 |
Housing for the Elderly/Infirm | 6.3 | 2.67.43.0 |
Hostels | 1.76 | 0.721.620.66 |
Guest Houses | 0.06 | 0.020.260.11 |
Convalescent Homes | 1.2 | 0.51.30.5 |
Qualifying (Private) Hospitals | 29.3 | 12.028.911.8 |
Qualifying Sports Injury Clinics | 4.3 | 1.83.71.5 |
Buildings used for childcare purposes | 24.2 | 9.829.912.0 |
Mental Health Centres | 0.3 | 0.10.20.0 |
Student Accommodation | 108.7 | 42.058.022.7 |
Registered Caravan Parks | N/A | N/A1.50.6 |
Notes to Table 3
1) The information available on the cost to the Exchequer is based on personal income tax returns filed by non-PAYE taxpayers (Form 11) and corporation tax returns filed by companies for the years 2007 and 2008, the latest year for which this information is available. Data for 2009 cannot be provided as the tax returns for this year are yet due.
It should be noted that any corresponding data returned by PAYE taxpayers in the income tax return (Form 12) is not captured in the Revenue computer system. However, any PAYE taxpayer with non-PAYE income greater than €3,174 is required to complete an income tax return (Form 11). 2) The estimated relief claimed has assumed tax forgone at the 41% rate for 2007 and 2008 in the case of individuals and 12.5% in the case of companies for both years. The figures shown correspond to the maximum Exchequer cost in terms of income tax and corporation tax. 3) The figures for 2008 are subject to adjustment in the event of late returns being filed or where returns already filed are subsequently amended.
Appendix 1
DESIGNATED ISLANDS
COUNTY | ISLAND |
Cork | Bere, Clear, Dursey, hare, Long, Sherkin, Whiddy |
Donegal | Arranmore, Inishbofin, Inishfree, Tory |
Galway | Inishbofin, Inisheer, Inishmaan, Inishmore |
Limerick | Foynes |
Mayo | Claggan, Clare, Inishbiggle, Inishcottle, Inishlyre, Inishturk |
Sligo | Coney |
SEASIDE RESORT SCHEME – DESIGNATED RESORTS
COUNTY | RESORT (note) |
Clare | Kilkee, Lahinch |
Cork | Clonakilty, Youghal |
Donegal | Bundoran |
Galway | Salthill |
Kerry | Ballybunion |
Louth | Clogherhead |
Mayo | Achill, Westport |
Meath | Bettystown, Laytown, Mosney |
Sligo | Enniscrone |
Waterford | Tramore |
Wexford | Courttown |
Wicklow | Arklow |
INTEGRATED AREA URBAN RENEWAL SCHEME
AREAS DESIGNATED
CITY/COUNTY | AREA/TOWN |
Cork | Blackpool/Shandon, City Docks Area |
Dublin | Ballymun, HARP, Inchicore/Kilmainham, Liberties/Coombe, North East Inner City, Millenium/O'Connell Street |
Galway | 3 Suburban Local Authority Estates |
Limerick | 1 Large Central Area |
Waterford | Periphery of commercial centre |
Carlow | Carlow |
Clare | Shannon |
Cork | Bandon, Cobh, Mallow (N), passage West (S)/Glenbrook |
Donegal | Buncrana |
Dublin | Dun Laoghaire, Balbriggan, North West Blanchardstown, North Clondalkin, Tallaght |
Galway | Tuam |
Kerry | Tralee |
Kildare | Athy, Kildare |
Kilkenny | Kilkenny |
Laois | Portlaoise |
Limerick | Newcastlewest |
Longford | Longford |
Louth | Drogheda, Dundalk |
Mayo | Ballina |
Meath | Navan |
Monaghan | Monaghan |
Offaly | Birr, Tullamore, Clara |
\Sligo | Sligo |
Tipperary | Roscrea, Thurles, Carrick-on-Suir, Tipperary |
Waterford | Dungarvan |
Wexford | Athlone, Mullingar |
Wicklow | Arklow, Wicklow |
Rural Renewal Scheme – Qualifying Areas
COUNTY | AREA – District Electoral Divisions |
Cavan | Arvagh, Springfield, Killashandra, Milltown, Carrafin, Grilly, Kilconny, Belturbet Urban, Ardue, Carn, Bilberry, Diamond, Doogary, Lissanover, Ballymagauran, Ballyconnell, Bawnboy, Templeport, Benbrack, Pedara Vohers, Tircahan, Swanlinbar, Kinawley, Derrynananta, Dunmakeever, Dowra, Derrylahan, Tuam, Killinagh, Eskey, Teebane, Scrabby, Loughdawan, Bruce Hall, Drumcarban, Corr, Crossdoney, and Killykeen. |
Leitrim | The administrative county of Leitrim. |
Longford | The administrative county of Longford. |
Roscommon | Ballintober, Castleheen, Carrowduff, Kilbride North, Lissonuffy, Killavackan, Termonbarry, Roosky, Kilglass North, Kilglass South, Bumlin, Cloonfinlough, Killurkin (in Roscommon Rural District), Strokestown, Annaghmore, Tulsk, Coolougher, Ballinlough, Kiltullagh, Cloonflower, Artagh South, Artagh North, Ballaghaderreen, Edmondstown, Loughglinn, Buckhill, Fairymount, Castlereagh, Frenchpark, Bellengare, Castleplunket, Baslick, Breedoge, Altnagowlan, Lough Allen, Ballyfarnan, Keadue, Aghafin, Ballyformoyle, Crossna, Kilbryan, Boyle Rural, Boyle Urban, Tivannagh, Rushfield, Tumna North, Tumna South, Killurkin (in Boyle No.1 Rural District), Oakport, Rockingham, Danesfort, Cloonteem, Kilmore, Elia, Ballygarden, Aughrim East, Aughrim West, Creeve (in Boyle No. 1 Rural District), Creeve (in Roscommon Rural District), Elphin, Rossmore, Cloonyquinn, Ogulla, Mantua, Lisgarve, Kilmacumsy, Kilcolgan, Estersnow, Croghan, Killummod, Cregga, Cloonygormican, Kilbride South, Kilgefin, Cloontuskert, Drumdaff, and Kilteevan. |
Sligo | Ballintogher East, Ballynakill, Lisconny, Drumfin, Ballymote, Cloonoghill, Leitrim, Tobercurry, Kilturra, Cuilmore, Kilfree, Coolavin, Killaraght, Templevanny, Aghanagh, Kilmactranny, Ballynashee, Shancough, Drumcolumb, Riverstown, Lakeview, Bricklieve, Drumrat, Toomour, Kilshalvy, Killdoon, Streamstown, Cartron, Coolaney, Owenmore, Temple, Annagh, Carrickbannagher, Collooney, and Ballintogher West. |
TOWN RENEWAL SCHEME – DESIGNATED TOWNS
COUNTY | TOWNS |
Carlow | Hacketstown, Muinbheag, Tinnahinch/Graiguenamanagh, Tullow |
Cavan | Bailieborough, Ballyjamesduff, Cavan, Cootehill |
Clare | Ennistymon, Milltown Malbay, Kilrush, Scarriff, Sixmilebridge, |
Cork | Bantry, Charelville (Rathluirc), Cloyne, Doberaile, Fermoy, Kanturk, Skibbereen, |
Donegal | Ardara, Ballybofey- Stranolar, Ballyshannon, Moville, Ramelton, |
Galway | Ballygar, Clifden, Headford, Loughrea, Portumna |
Kerry | Caherciveen, Castleisland, Killorglin, Listowel |
Kildare | Castledermot, Kilcock, Kilcullen, Monasterevan, Rathangan |
Kilkenny | Callan, Castlecomer, Pilltown, Thomastown, Urlingford |
Laois | Mountmellick, Mountrath, Portarlington, Rathdowney |
Limerick | Abbeyfeale, Castleconnell, Croom, Kilmallock, Rathkeale |
Lough | Ardee, Carlingford, Castlebellingham, Dubleer |
Mayo | Ballinrobe, Belmullet, Claremorris, Foxford, Newport |
Meath | Duleek, Kells, Oldcasrle, Trim |
Monaghan | Ballybay, Castleblayney, Clones |
Offaly | Banagher, Clara, Edenderry, Ferbane, |
Roscommon | Roscommon |
Sligo | Bellaghy-Charlestown, Rosses Point |
Tipperary N.R. | Borrisokane, Littleton, Nenagh, Templemore |
Tipperary S.R. | Cahir, Cashel, Fethard, Killenaule |
Waterford | Cappoquin, Kilmacthomas, Portlaw, Tallow |
Westmeath | Castlepollard, Kilbeggan, Moate |
Wexford | Bunclody, Ferns, Gorey, Taghmon |
Wicklow | Baltinglass, Carnew, Dunlavin, Tinahely |
Living Over the Shop Scheme
Year | City | Designated Areas |
2004 | Cork | Qualifying Streets |
2004 | Dublin | Qualifying Streets |
2004 | Galway | Qualifying Streets |
2004 | Limerick | Qualifying Streets |
2004 | Waterford | Qualifying Streets |
2007 | Cork | Qualifying Streets |
2007 | Dublin | Qualifying Streets |
2007 | Galway | Qualifying Streets |
2007 | Limerick | Qualifying Streets |
2007 | Waterford | Qualifying Streets |
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